NCJ Number
139568
Date Published
1992
Length
6 pages
Annotation
This article describes some of the crimes that are occurring in Hungary under laws designed to privatize economic enterprises and suggests ways to counter such crimes.
Abstract
Prior to the end of 1988, the reorganization of businesses in Hungary had been conducted under commercial law XXXVII enacted in 1975. Since then the process has been governed by the 1988 law VI on business organizations and the 1989 law XIII on the transformation of business organizations. In addition to these laws there are a number of provisions and regulations that control the processes and means of business operation. The transitional period and the new forms of businesses provide ample opportunity for law violations and unlawful profitmaking. People are motivated to commit these crimes by the possibility of large financial gains, the low risks, and the impossibility of material reparation. The responsibility for investigative and preventive measures is entrusted by the law to institutions other than the police. These include the National Audit Office, the registration courts, and banking supervision. These agencies, however, do not have the legal and material resources nor the expertise to fulfill their enforcement responsibilities. The efficiency of these agencies should be enhanced, and a structure for daily cooperation should be established between the police and the agencies. The loop holes in legal regulations should be eliminated, and the institutions responsible for countering the problems should cooperate in the drafting of laws that can better address the problems. Given the specialized knowledge involved in the commission of the offenses and the specialized nature of the evidence-collection procedures and the evidence analysis, enforcement personnel must be trained to detect and investigate crimes associated with the transition to privatization.